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Mass lay-offs tremendously impact employees and companies. Helping people toward new employment could help organizations manage costs and reputation. The authors sought to test a model, based on regulatory focus theory, predicting which employees are more likely to consider leaving the company during this uncertain time (turnover intentions) and indirectly to engage in behavior to strengthen their external labor market position (mobility-oriented behavior).

With a mass lay-off impending, the authors studied employees (N = 326) in a financial services organization. The authors reasoned that employees' perception that they have higher (vs lower) qualifications than their job requires, may be able to spur turnover intentions for some because it enhances perception that movement to another job is desirable and feasible. The authors proposed perceptions of being overqualified vs perceptions of being underqualified only affect the turnover intentions and mobility-oriented behavior of promotion-focused employees.

Supporting the expectations, promotion-focused employees (but not prevention-focused employees) who perceived themselves to be overqualified, compared with promotion-focused employees who perceived themselves to be underqualified, showed higher turnover intentions and, indirectly, mobility-oriented behavior.

This research is one of few studies that have examined intentions and behavior of employees who are facing impending mass lay-off, as most lay-off research has studied survivors or victims post lay-off. To the best of the authors’ knowledge, this is the first study to apply a regulatory focus perspective on overqualification/underqualification, as well as to turnover intention and mobility behavior.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Researchers from the European Union studied the effect of impending mass lay-offs on employees at a financial services organization. They found that promotion-focused employees (but not prevention-focused employees) who perceived themselves to be overqualified for their current roles, compared with promotion-focused employees who perceived themselves to be underqualified, showed higher turnover intentions and, indirectly, mobility-oriented behavior.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

This research sought to understand better how readily managers choose action to change the status quo. Specifically, in experimentally manipulated ambiguous situations, I examined the effect of managers’ promotion and prevention focus on how much information they wish to review to help them choose.

I developed a novel experimental paradigm and applied it in a sample of 157 managers. Managers faced choosing action (change the status quo) versus non-action (keep the status quo), and I test under which circumstances they want to review more information that they believe will help them choose effectively.

The experiment showed evidence that (1) managers with a prevention focus want to review more information when they are trying to assure that they do not choose action erroneously; (2) managers with a promotion focus want to review more information when they are trying to assure that they do not choose non-action erroneously.

This research provides an original perspective on a managerial decision-making phenomenon. It goes beyond managers’ choice preferences to examine a practically relevant outcome of the process of deliberating about taking action to change the status quo.